Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe Company was a $300 million holding company based in New Jersey with four operating subsidiaries:
Softness in the trailer, truck body, and rail car sectors, the largest customer segments of the Company, as well as the lack of consumer confidence and crisis in the housing industry both of which directly impacted the Company, were largely responsible for weak operating performance in 2007 ($3.2 million of EBITDA versus $20.6 million in 2006) and an increasingly strained liquidity position. After several failed attempts to sell the company and raise fresh capital, J.S. Held was engaged in January 2008 to quantify the estimated cash requirements during the first half of 2008, review the longer term financial forecast, and to outline and recommend strategic alternatives to the Board.
J.S. Held determined that the Company would need the Bank Group to support approximately $7.4 million in excess of its borrowing base at its peak requirement during the 1st half of 2008, and when the Bank Group expressed its unwillingness to provide this support, the Company re-accelerated its efforts to consummate a sale of the Company. On March 16, 2008 the Company and affiliated entities filed its plan of reorganization with affiliates of Versa Capital Management, Inc. as Plan Funder and a DIP Lender.
Our experts served as the Restructuring Advisor to the Company throughout its Chapter 11 cases, and helped usher the Company to a successful emergence by providing critical support in the following areas:
Ultimately, affiliates of HIG replaced Versa as Plan Funder and DIP Lender, primarily due to a 10x larger pool for unsecured creditors and more favorable financing terms, and a competitive process whereby HIG would serve as the stalking horse bidder was implemented. After renegotiating several union contracts and resolving some very complicated environmental issues, the HIG-sponsored Plan was confirmed on July 22, 2008 and Shapes/Arch emerged from bankruptcy protection on August 8, 2008. The final outcome was payment in full to all secured, administrative and priority creditors, a minimum fund of $5,000,000 for unsecured creditors, and the preservation of almost 1,000 jobs.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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